5 Overview to Invoice Processing

5.1 Objectives

To understand the differences between standard invoices and speed invoices

To revise unposted and posted invoices

To post invoices to the general ledger

To understand how to enter and process recurring invoices

To locate customer ledger information

5.2 About Invoice Processing

Generally, you create an invoice before you receive payment from the customer. Effective management of invoice processing is fundamental to your accounts receivable department.

Invoice processing consists of:

Working with invoice entry controls

Understanding fiscal date patterns

Working with standard invoices

Working with other types of standard invoices

Entering speed invoices

Reviewing and approving invoices

Understanding the post process

Posting invoices

Revising posted invoices

Printing Invoice Journal Information

Locating customer ledger information

Working with recurring invoices

Invoice processing is one example of three-tier processing. All JD Edwards World systems use three-tier processing to manage batches of transactions. The term three-tier refers to three standard steps you perform.

The following graphic illustrates the concept of three-tier processing.

Use one entry program to enter both invoice and accounting distribution information

Enter limited invoice information quickly

Speed invoice disadvantages

You cannot:

Cannot split payments

Cannot modify or delete invoices

Cannot set up recurring invoices

Cannot enter more than one pay item per invoice

Cannot create model journal entries

5.2.2 When Do You Review and Approve Invoices?

After you enter invoices, you can review and approve them before posting. You can:

Review and approve batches

Review and revise individual invoices

Review and revise associated journal entries

5.2.3 What Happens When You Post Invoices?

After you review and approve invoices, post them to the general ledger. When you submit a batch of invoices for posting, the system:

Selects unposted, approved invoices and edits each transaction

Posts accepted transactions to the Account Balances table (F0902)

Creates automatic offsets to the A/R trade and tax accounts

Marks the invoices as posted in the A/R Ledger (F0311) and Account Ledger (F0911) tables

5.2.4 When Do You Set Up a Recurring Invoice?

If you have a customer that you repeatedly bill for a specific amount, such as a service or lease agreement, set up a recurring invoice. You specify the frequency and the number of payments when you enter the original invoice.

5.2.5 What Is Customer Ledger Information?

As part of your A/R activities, you might need to view the transaction history of a customer. Customer ledger information provides:

Open amounts remaining on an invoice

Pay status and posting status of an invoice

Invoice detail and associated journal entry information

Account status information

Receipt information

When you work with Customer Ledger information, be aware the action code and search type security may affect your ability to inquire upon, add, or change customer information. You must have the appropriate combination of action code/search type security to work with Customer Ledger information.

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